In Hollywood’s hands, this plot would be a no-brainer, with the guys in the white hats mopping up the floor with the bad guys.

However, it is only fair to warn flag-waving partisans on either side, who see the conflict in terms of unblemished virtue against pure evil, that they’re not going to like the way the film handles its subject.

As the film’s producer, Talia Kleinhandler, writes, “What I think is important about this story is that it never attempts to give a clear answer about right and wrong. All the characters in ‘Bethlehem’ are flawed; all are vulnerable. There is no black and white in this film, only painful shades of gray – like the reality we all live in here.”

If this assessment makes it sound like a namby-pamby movie, full of on-the-one-hand, but on-the-other-hand, agonizing, “Bethlehem,” named for the West Bank city where the action unfolds, is anything but.

Co-written by Yuval Adler, an Israeli Jew who served in an army intelligence unit, and Ali Waked, a Palestinian Muslim and journalist, “Bethlehem” is a nail-biting thriller with enough intrigue and bullets to keep the most demanding action fan satisfied.

The film’s time and setting is the Second Intifada, from roughly 2000 to 2005, and in the opening scene, Palestinian suicide bombers have struck in the heart of Jerusalem, with scores dead and wounded.

The central protagonists are Razi, a veteran Shin Bet (or Shabak) agent, and Sanfur, a 17-year-old Palestinian recruited by Razi as an informer two years earlier.

But Sanfur isn’t just any kid with a hankering for American jeans. He is the younger brother of Ibrahim, the local leader of the Al-Aqsa Martyrs Brigade, whom Razi has been hunting for more than a year.

Like almost everything in the movie, and in the Israeli-Palestinian conflict it depicts, the relationship between the seasoned Israeli agent and the teenage Palestinian boy is complex and often contradictory.

Adler, who is also the film’s director, quotes a veteran Israeli secret service agent who told him that “the key to recruiting and running informants is not violence, or intimidation, or money, but the key is to develop an intimate relationship with the informant, on a very human level. It’s not just the informant who is confused about his identity and loyalties. The agent, too – and especially the good ones – often experience a blurring of the lines.”

Following this dictum, Sanfur, whose own father clearly favors the militant Ibrahim over his younger son, finds in Razi a kind of surrogate father, and Razi cares personally for the boy – even if that clashes with his professional duties.

While the Palestinian militants hate Israel, they dislike their internal rivals with equal intensity. The secular al-Aqsa Martyrs Brigade, affiliated with Fatah, contemptuously refers to the fervently Islamic Hamas as the “beards,” who in turn loathe the corrupt bureaucrats of the Palestinian Authority.

Co-writer Waked, interviewed in a Hollywood hotel, draws an analogy between these feuds and the pre-1948 Jewish community in Palestine, when Menachem Begin’s Etzel and David Ben-Gurion’s Haganah detested one another with as much fervor as they did the British soldiers.

Another remarkable aspect of “Bethlehem” is that almost everyone involved in making the movie is pretty much of a novice.

The strong acting lineup, foremost Shadi Mar’i as Sanfur and Tsahi Halevy as Razi, consists almost entirely of first-time actors. Furthermore, for both Adler and Waked, “Bethlehem” is their first feature film.

Adler, 44, said in an interview that his film debut is a major hit in its home country, and won a fistful of awards, including best picture, at the Israeli equivalent of the Academy Awards.

Israel’s media, which have a much higher tolerance for national self-criticism than their American counterparts, have generally come out with complimentary reviews, though the strongest raves have been in the foreign press and trade papers.

Curiously, while in most countries the political right would have condemned the film’s critical take on the national security service, in Israel it has been the left that has slammed the picture for its supposedly distorted view of the Palestinian struggle.

Thus in an article in the daily Haaretz, headlined “ ‘Bethlehem’ is yet another Israeli propaganda film,” critic Gideon Levy terms as “outrageous” what he sees as the movie’s portrayal of Israelis as the good guys and Palestinians as the bad guys.

Adler, who has steadfastly declined to discuss his own political orientation, considers such charges preposterous. His diverse cast of Israeli and Palestinian actors “made it possible to see the world through their eyes,” he said. “As director, I tried to bring their contradictory viewpoints into a single whole, without taking sides, and without judging them.”

For the Israeli Film Academy, picking “Bethlehem” as the country’s official Oscar contender marks an interesting shift in focus from the two preceding entries, “Footnote,” which dealt with academic rivalries at a university, and last year’s “Fill the Void,” which viewed life and love among the ultra-Orthodox.

It will be interesting to see how the famously unpredictable Academy selection committee reacts to the picture, but the film has been touted as a real Oscar contender in a number of Hollywood publications.

A quick glance at submissions from other countries shows that, contrary to frequent predictions, the world’s producers and directors have not lost their interest in movies about the Nazi era, the Holocaust and the conflict in the Middle East.

Argentina’s “The German Doctor” follows the notorious Dr. Josef Mengele, Auschwitz’ “Angel of Death,” as he flees to the South American country and befriends an unsuspecting family there.

In years past, the U.S. Academy wrestled with the proper terminology for the “Palestinian Authority” or “Palestinian Territories,” but apparently everybody has stopped worrying about the problem, so the film “Omar” is credited with coming from “Palestine.”

Omar, the baker, lives on one side of Israel’s security wall, while the beautiful Nadia lives on the other side. But the romantic scenario turns very grim as Omar becomes a “freedom fighter” battling the ruthless Israeli occupiers.

One of the more interesting entries is The Philippines’ “The Transit,” which deals with the lives of Filipinos working in mostly low-paid jobs in Israel.

For World War II buffs, there is Russia’s “Stalingrad,” which chronicles both the epic battle and love among its ruins.

“Bethlehem” will be released in local theaters Feb. 21, 2014. Oscar nominees will be announced Jan.16 and the winners will be crowned on March 2.

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